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Changing Company Types in Denmark

Changing Company Types in Denmark

Investors in Denmark can choose between several corporate forms available in the country. Each of them has characteristics that may be better suited for some types of businesses than other.

Changing the company type in Denmark is possible if observing the rules and regulations for registration, asset transfer, and corporate management.

Our agents who specialize in company registration in Denmark can help you change the corporate type if this step that will be beneficial for your business.

Types of companies in Denmark

The A/S (public limited company) and the ApS (private limited company) are two of the most popular business forms in Denmark. Investors can also open a branch or a representative office.

The IVS (entrepreneurial company) is a simpler form of the ApS and can be used by entrepreneurs who have a small set-up capital. It is not a sole proprietorship, but a smaller version or alternative to the private limited liability company.

It is possible to change the company type in Denmark, provided that all of the company incorporation and registration steps are being followed for the new legal entity that will replace the old one. For example, investors may choose to convert an IVS into an ApS or an ApS into an A/S once the business becomes larger. Our team can help you change a company type and can also offer other business related services, such as trademark registration in Denmark.

Company registration in Denmark for the changed corporate entity

In order to change the Danish company type, investors will need to register it with the Danish Business Authority. The new company may retain the name of the old one if it is available. Company name reservations are possible with the help of a company registration expert in Denmark. 

The capital requirement when upgrading the type of company in Denmark will be different and investors are advised to take this into consideration. The assets of the old company may be transferred into the ownership of the new one. When changing an ApS into an A/S, the management requirements will become more rigorous: for example, the two-tier management system is mandatory for the public limited company. In some cases, when the company type changes so will the annual revenue above which VAT registration in Denmark becomes mandatory. We reccomend that investors keep this in mind.

Once the company change is complete, trademark registration in Denmark can be taken into consideration.

If you want to open a company in Denmark or need to know more about changing company types, you can contact our experts in company formation.